Judy S. asked for the stitch pattern on one of the baby hats I knit for Haiti, so here it is.
The base is a multiple of eight stitches with k7,p1 ribbing.
I have knit socks with this stitch pattern and they turned out stretchy and very pretty with the finer gauge. See them here.
Multiple of 8 stitches, 4 rows.
Knit in the round.
Row 1: k7, p
Row 2: k7, p
Row 3: k, YO, p, p3tog, p, YO, k, p
Row 4: k7, p